Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Japanese auto giant Honda Motor (NYSE: HMC) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Honda's business and see what CAPS investors are saying about the stock right now.

Honda facts

Headquarters (Founded) Tokyo, Japan (1946)
Market Cap $64.43 billion
Industry Auto manufacturers
Trailing-12-Month Revenue $111.25 billion
Management CEO Takanobu Ito
CFO Satoshi Aoki
Return on Equity (Average, Past 3 Years) 8.2%
Cash/Debt $51.96 billion / $15 billion
Competitors Ford Motor (NYSE: F)
Toyota Motor (NYSE: TM)
Tata Motors (NYSE: TTM)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 95% of the 1,711 members who have rated Honda believe the stock will outperform the S&P 500 going forward. These bulls include davfoo and Sleddawg63.

This past summer, davfoo tapped Honda as a high-quality selection: "Honda will continue to be the quality leader in the automotive industry. It sticks to what it knows and does best. It takes its time to make sure new products retain the same quality as the old. Its small enough that it can still grow market share (unlike Toyota)."

In fact, according to a recent survey by Consumer Reports, Honda and Toyota have come out as the makers of the most problem-free cars and trucks. However, U.S.-based automakers Ford and General Motors are quickly narrowing the gap in quality after their respective overhauls. Of course, with market share momentum also on the side of Honda and Ford, CAPS member Sledddawg63 thinks they make a particularly potent pair of picks:

Who says [Honda's] cars are ugly? Typical Big Three argument not to buy. lol. That's why two went bankrupt I guess. People have been buying on reliability and resale value since the early 90's. Detroit didn't get that memo until ... now? Honda will reap (and learn) from the problems at Toyota. Honda and Ford will be the new BIG TWO in America for years to come.

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